The new technology introduced by the Cardano (ADA) ecosystem can improve the decentralization of the Cardano (ADA) network and solve numerous problems.

What makes Cardano's eUTXO (Unspent Transaction Output) model different from the Ethereum (ETH) network is that all transactions occur in parallel. So there is a fair share of difficulties for dApps (Decentralized Applications) and solutions like transaction chaining are built to solve these problems.

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At first, decentralized Cardano (ADA) applications such as Minswap or SundaeSwap used the "collection" solution, where off-chain sequencers aggregate a set of UTXOs before sending and executing them on-chain. While this solution solved a number of problems tied to the eUTXO (Unspent Transaction Output) model, it also brought with it numerous risks such as centralization, storage and stacker executable value that could be used for some attacks against users.

The new solution introduces another option where UTXOs (Unspent Transaction Output) are not grouped off-chain, but virtually "first come, first served". The transaction chain operates in a decentralized manner, publicly and visible. The chain is accessible to anyone with no limitations on who can consume which UTXO.


Additionally, transaction chaining adds another sector that reduces latency in processing orders. The app assumes that orders will be made on-chain and that if something goes wrong they will be rolled back without any loss. First of all, the transaction is sent to the mempool, which reveals its correctness. Once this happens, users' transactions are associated with a specific UTXO that protects users' transactions and can reverse them even if something goes wrong.

Essentially, the new solution can solve most problems Cardano-based DEXs and other decentralized applications face today; this is extremely important as the project's biggest competitor, Ethereum, faces potential regulatory issues after migrating to a PoS consensus algorithm.